(solution) The February contribution format income statement of Mcabier Corporation appears below

(solution) The February contribution format income statement of Mcabier Corporation appears below

The February contribution format income statement of Mcabier Corporation appears below: Degree of operating leverage = Contribution margin/Net operating income = $251,100/$41,300 = 6.08 Percent increase in net operating income = Percent increase in sales × Degree of operating leverage = 19% × 6.08 = 115.52% Sales $211,200 Variable expenses 96,000 Contribution margin 115,200 Fixed expenses 84,100 Net operating income $ 31,100 The degree of operating leverage is closest to: A) 0.27 B) 6.79 C) 3.70 D) 0.15